The Insurance Regulatory and Development Authority(IRDA) has instructed ICICI Prudential Life Insurance to take over the life insurance business portfolio of Sahara India Life Insurance from 31st July 2017. On June 23, it has asked Sahara life to stop issuing policies.
IRDA in a notice said, “Order is binding on all persons concerned, and shall have an effect not withstanding anything in the memorandum or articles of association of Sahara India Life Insurance”.
The regulator had raised concerns over the management of Sahara India Life Insurance. Due to which, last month, it had written to six insurance companies including ICICI Prudential Life, SBI Life, Bajaj Allianz Life, HDFC Life and Kotak Life to take over policyholders assets and liabilities of Sahara Life. Among all, ICICI Prudential Life has expressed its interest in taking over the policyholders’ assets and liabilities of Sahara Life.
The policyholder’s liability of Sahara Life is about ₹900crore, which is less than 1% of ICICI Prudential Life balance sheet.